Wide World of Dean Series Part I: A Greener China

September 10th, 2009 at 12:45 pm Posted by The Dean
Dear Students

wideworldofdeanSince The Dean’s trip to China a few weeks ago, the Chinese markets have seen some turns. Although the Shanghai market, previously up more than 35% this year, has seen a decrease of 18% recently, The Dean feels a market that is so high up will always have fluctuation. Any smart investor should realize that there’s a great difference between fluctuation and volatility. Proof of this has come with three consecutive days of increases totaling 6% this week so far.

As The Dean has said in his Importance of China Essay, the Chinese markets are more than loosely related to the economy in the United States. For example, with jumps in gold due to speculation of the weakening dollar and inflation concerns, China’s currency could naturally see increases. Furthermore, The Dean thinks that a sharp decline in household income in the US is strikingly different than the economic growth and prosperity of the China boom.

One of the main reasons for The Dean to introduce his Wide World of Dean Series is to give the CollegeStock Community some ideas about possible opportunities in foreign industries and markets. While The Dean was in China, he saw potential in the clean energy and renewable resources arenas. Unlike health care, green technology is not a heated debate because countries around the globe see the NEED for cleaner and greener technologies.

An article from Wall Street Journal this morning highlights The Dean’s feeling about going green in the most populous country in the world, reporting that anywhere from $500 billion to $1 trillion will be pumped into the clean energy market. Now, that’s what
The Dean’s talking about. In his travels on the internet and abroad, The Dean has found a number of useful investment resources. So far as clean and green technology in China is concerned, The Dean believes the China Greentech Report is great study material. Why, you ask? For starters, it outlines 300 companies that could EXPAND into the Chinese marketplace—how’s that for a BIG opportunity?

The Dean thinks clean energy could be HUGE in China because growth merits more green efforts. More people + larger industrial productivity = more transport, more materials and more waste!

Wall Street Journal also reported that China and the US contribute 40% of global emissions and use 1/3 of the world’s energy. And since many of these initiatives require government support and funding to become a reality, The Dean believes China could become the great green giant. Remember, the US isn’t the only country pumping hundreds of billions of dollars into their economy.

The Dean isn’t the only one who sees the wide open window in China, as “Many experts foresee a green trade boom between the United States and China due to their enormous energy demand.”

Julian Wong, Senior policy analyst at the Center for American Progress said last week that “It’s going to be huge because it has to be huge.” And BusinessWeek also commented on green technology and climate change. In fact, they’ve created their own “Eye on China” section online.

Companies like First Solar (NASDAQ: FSLR) could continue to see increase for years to come because they’ve already started taking advantage of the need for energy and renewable resources in China.

The International Energy Agency has estimated that $26,000,000,000,000 ($26 trillion) will be needed for global energy demands by 2030—that’s a 1300% increase over the next 2o years or 65% growth every year! The Dean doesn’t even have to tell you that figures into enormous energy potential.

Happy Trading, The Dean



2 Students Raised Their Hands

  1. I don’t know why nobody comments on a great post like this! Nice work Dean

  2. ChinaDoll32 on September 11th, 2009 at 5:38 AM
  3. I agree. Thanks for putting it together Dean.

  4. Tommy V. on September 11th, 2009 at 7:01 AM

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